AMUL , A case analyze on IT in SCM A live case of Use of IT Amul is a leading meals brand in India. It offers a wide range of items like milk, milk powder, butter, ghee, cheese, sweets, Shrikhand, goodies and many more. The rand name name AMUL is derived from the Sanskrit term “Amoolya”, meaning priceless.
The first items with the Amul brand name had been launched in 1955. Since then, they have been used in an incredible number of homes in every parts of India, and over and above.
Today Amul is a symbol of several things: Of high quality products sold at reasonable prices, of availableness, of services. Amul have been accredited with ISO 9001 and HACCP Certification by simply QAS, Australia-the first food company in Asia to get the HACCP Certification “Amul” is a outstanding and live example of making a strong usage of IT Shaped in the year 1946, Amul initiated the dairy co-operative movements in India and formed an top co-operative organization called the Gujarat Supportive Milk Advertising Federation (GCMMF).
Today, this movement is being replicated in 70, 500 villages in over 2 hundred districts in India, transforming the rural scenery. This co-operative revolution has made India the greatest producer of milk in the world today. Amul is additionally one of the greatest and most commemorated food brands in India. GCMMF market segments its products through 50 sales offices through India, and distribution is carried out through a network of some, 000 stockists who, consequently, supply five-hundred, 000 stores.
The complexness of logistics can be visualized in terms of: countless litres of milk being collected coming from millions of village members. Strangely enough, milk is actually a perishable commodity, hence a solid coordination function is required in storing, digesting and distributing the dairy in required time. The case of Amul’s supply string is noteworthy simply because the movement has not only cause efficient collection of milk but , more importantly, has used IT to create higher profits for milk producers. Part of Information Technology IT has played out a critical part in the advancement the Amul brand.
The logistics lurking behind the dexterity of approximately half a dozen million liters of dairy per day from numerous town co-operative societies throughout Gujarat, and keeping, processing and producing of milk products at various district dairy societies, is carried out with clock-precision. In these, THIS plays a vital role. The installation of over several, 000 Automatic Milk Collection System Devices (AMCUS) for village societies to capture affiliate information, milk fat content material volume accumulated, and volume payable to each member, provides proved very helpful in making sure fairness and transparency through the entire entire firm.
GCMMF can be an height co-operative firm that includes affiliated member dairies/district dairy unions, every single having its very own manufacturing unit. These types of member dairies in turn accumulate milk via members who have supply dairy twice a day to the individual village co-operative societies. To satisfy the challenge of growing business, IT was determined as the thrust region that would improve the production and collection process and the processing of dairy food. This is where getting AMCUS built the entire procedure look basic.
As dairy is a very perishable asset in the supply chain, the AMCUS project is vital intended for the functions. More importantly, this initiative has grown the trust and transparency for IT in rural areas’. On an average, around 1000 farmers come to sell milk at all their local cooperative milk collection center. Each farmer has a plastic card for recognition, at the milk collection countertop, the character drops the into a container and the recognition number can be transmitted into a personal computer placed on the machine.
The milk can then be weighed as well as the fat articles of the milk measured simply by an electronic excess fat testing equipment. Both these particulars are noted in the PERSONAL COMPUTER. The computer then simply calculates the amount 1 AMUL , A case study onto it in SCM due to the player on the basis of the fat content. The significance of the milk is then branded out on a slip and handed over towards the farmer, who collects the payment at the adjacent windows. With the help of THIS the farmers receive their particular payments in a matter of minutes.
Each member preserves the milk in the cold storage, processing it and making several items, sold underneath the Amul name brand. As every products have got a limited shelf life, the company ability to execute its functions in a easy way is more praiseworthy-especially when one views the scale from the operations. Amul makes about 10 , 000, 000 payment orders daily. Around the logistics part, more than your five, 000 pickup trucks move the milk through the villages to 200 milk processing crops twice every day, according into a carefully organized schedule.
Amul took a strategic decision to redesign and re-organize the current software applications in 1994 in order to meet the difficulties of growing business. Accordingly, Amul designated the ENTERPRISE RESOURCE PLANNING software development project called as Business wide bundled application system (EIAS) which covers a plethora of functions like industry planning, advertising and campaign, distribution network planning, inventory control, revenue and accounting, budgetary control, quality control management and co-operative support management.
Every of Amul’s offices is definitely connected by e-mail and all sorts of them mail a daily report on sales and inventory to the key system at Anand. Likewise, sales offices, C&F details and inexpensive distributors of GCMMF have been completely connected through the Internet pertaining to timely exchange of information. Amul is also at the same time of Web-enabling the entire source chain in order that it can get key information at the source and use the same to get decision-making. This will include the loves of transporters, member production units, olive oil packing stations, suppliers, depots and the ntire field push. A web site (http://www. amul. com) has been constructed featuring athletics information, quality recipes and quizzes (to activate buyer interest and to set up national manufacturer recognition) and business-to- buyer order placement. Amul provides a customer feedback channel which uses e-mail tackles like [email, protected] com for cheese goods and [email, protected] com for rechausser products. E-competency has been set up at the supply and syndication ends of AMUL’s organization.
At the supply end, a computerized data source has been established of all suppliers and their cattle. Computerized gear measures and records features and volumes collected. Computer systems have been build at affiliate unions and village cooperatives. At the circulation end, stockists have been furnished with basic schooling and personal computers. AMUL authorities assist retailers and stores to build marketing web pages. AMUL cyber stores have been build at several locations in India, the USA, Singapore and Dubai.
Every visit to the Indian cyber store sites results in considerable purchases. A solid e-mail data source of more than 10, 000 clients has also been developed. In addition to the EIAS, Amul has also been using Geographic Information Systems (GIS) to plot zone/depot boundary in addition to a pointer to get zone, website and supplier locations, which are superimposed by product-wise sales data. Going forward, there are ideas to bring in features like Internet banking services and ATMs which will enable milk societies to credit obligations directly to the seller’s bank account.
In line with this vision, officials at Amul are looking at upgrading the plastic-type cards, which are being at the moment used only for identification uses, to wise cards which may be used to pull away cash from ATMs. Amul has radically altered the complexion from the supply chain-by eliminating the middleman and bringing the maker closer to the consumer-resulting in benefits for both. Amul has also linked distributors to the network and also incorporated Webpages of top retailers inside their web site (www. amul. com) as part of BUSINESS-ON-BUSINESS initiatives.
Vendors can place their orders on the website, amulb2b. com, especially meant for receiving orders by stockists and promoting Amul’s products by way of 2 AMUL , An instance study upon it in SCM E-commerce. A huge achievement than it in Amul has been the automation of the complex supply and delivery string. The computerized supply cycle seamlessly works with the production dairy units for development, planning and raw materials procurement. It handles syndication of dairy from surplus unions to deficit assemblage.
It is a live example of rehearsing Just over time supply cycle management with six sigma accuracy! Amul’s success in leveraging IT to it is advantage is based on the simple reality the organization has a clear IT vision and has made complete use of possibly IT for managing its supply cycle. In 2003, GCMMF received the prestigious international CIO 100 merit from IDG’s CIO Publication, USA. The 2003 CIO 100 merit recognizes organizations around the world that excel in positive business performance through resourceful THAT management and best practices.
GCMMF, whose THIS initiatives have already been driven by philosophy to be an IT company in food business, has encouraged all the employees to sustain the challenges as a “change agent” by excelling their IT skills to be able to transform the folks around them to IT integration on both the ends of supply sequence (village milk farmer to end-consumer), GCMMF has also won the exclusive Ramkrishna Bajaj National Top quality Award intended for the year the year 2003.
GCMMF has bagged this kind of award pertaining to adopting noteworthy quality managing practices pertaining to logistics and procurement. Over time, it has proven an efficient supply chain that penetrates your remotest edges of the nation. In summary, Amul has developed worldclass expertise inside the physical division of short-life produce. Already advanced in physical strategies, Amul offers innovatively investigated ways to put it to use to enhance their supply cycle. (Source: amul. com, ExpressComputers(16 Sept 2002: article by simply Srikanth Ur P), and other sources)
GCMMF: An Overview Members No . of Producer People No . of Village Communities Milk collection (Total , 2002-03) Milk collection (Daily Average 2002-03) Milk Drying out Capacity Product sales Turnover (2002-2003) 12 section cooperative dairy producers’ Union. 2 . twenty eight million. eleven, 132. 1 ) 86 billion dollars litres. five. 08 million litres. 510 metric Lots per day. Rs 27457 Million. IT Enablers used by Amul ¢ Uses automated dairy collection program units intended for collection of milk. ¢ Integrated a personalized ERP program which is used jointly with GIS. Uses data analysis software pertaining to forecasting dairy production and increasing output. ¢ Provides connected most zonal, regional and member dairies through VSAT. ¢ One of the first five Indian companies to have a Online presence. ¢ Geographic information system for revenue and division planning. ¢ Data Information System Kiosk for data analysis and decision support to help in improving milk collection. ¢ Web empowered customer feedback stations. ¢ Good initiatives in e-commerce. several
